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GLOBAL MARKETS-Vaccine news boosts commodities, EM assets; stocks cheer Yellen news

Stock MarketsNov 24, 2020 05:40
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* Mexican peso touches its strongest versus the dollar since
* Biden reported to nominate ex-Fed Chair Janet Yellen to

* "Vaccine for the world" drives risk-on approach
* Gold hits four-month low; US benchmark yield rises

(Updates to U.S. market close, adds Yellen)
By Rodrigo Campos
NEW YORK, Nov 23 (Reuters) - Stocks brushed up against last
week's record on Monday and an index of commodity prices closed
at its highest since March as more vaccine news gave investors
hope economic activity could resume globally at a faster clip
than many feared.
AstraZeneca AZN.L said its COVID-19 vaccine, cheaper to
make, easier to distribute and faster to scale-up than its
rivals, could be as much as 90% effective. "This means we have a vaccine for the world," said Andrew
Pollard, director of the Oxford University vaccine group that
developed the drug.
Assets from emerging markets reacted strongly to the news,
as it allays concerns over the distribution logistics of a
vaccine for developing countries.
A popular emerging market stocks ETF EEM closed at a
32-month high while the Mexican peso MXN= briefly strengthened
to under 20 per dollar for the first time since March.
Emerging market stocks rose 0.93% while MSCI's gauge of
stocks across the globe .MIWD00000PUS gained 0.36%.
On Wall Street the Nasdaq underperformed as traders rotated
away from big tech names. Stocks got an extra boost after
reports that U.S. President-elect Joe Biden plans to nominate
former Federal Reserve Chair Janet Yellen to become the next
Treasury secretary.
"Yellen should be a very strong advocate for more aggressive
fiscal policy, and given her gravitas around Washington, it may
make her the single most effective fiscal expansion advocate
Biden could have picked," said Tom Graff, head of fixed income
at Brown Advisory in Baltimore.
The Dow Jones Industrial Average .DJI rose 327.79 points,
or 1.12%, to 29,591.27, the S&P 500 .SPX gained 20.05 points,
or 0.56%, to 3,577.59 and the Nasdaq Composite .IXIC added
25.66 points, or 0.22%, to 11,880.63.
Oil prices added to last week's gains as traders anticipated
the vaccine news would spur a recovery in energy demand.
"Investors are ignoring near-term headwinds, chief among
which are surging global COVID infections, and instead looking
ahead to next summer," said PVM analyst Stephen Brennock.
The United States surpassed 255,000 deaths and 12 million
infections since the pandemic began, with daily infections at a
record near 170,000 and daily deaths around 1,500.
U.S. crude CLc1 rose 1.04% to $42.86 per barrel and Brent
LCOc1 was at $45.81, up 1.89% on the day.
An index of commodity prices .TRCCRB touched its highest
since early March.

The U.S. dollar index touched its lowest since Sept. 1
before edging higher, even as it weakened against the British
pound - and despite the dovish Yellen news.
"Her appointment would be seen as slightly dollar negative,"
said John Doyle, vice president of dealing and trading at Tempus
in Washington. "However, with the (opposition Republican
Party)likely to hold the Senate, there will be handcuffs on what
the Biden administration can get pushed through."
The dollar index =USD rose 0.22%, with the euro EUR=
down 0.13% to $1.1838.
The Japanese yen weakened 0.65% versus the greenback at
104.57 per dollar, while sterling GBP= was last trading at
$1.3321, up 0.29% on the day.
The Mexican peso lost 0.16% versus the U.S. dollar at 20.18.
Earlier it touched 19.9488 per dollar.
U.S. Treasury yields rose and the yield curve steepened as
investors took encouragement from positive vaccine news.
Benchmark 10-year notes US10YT=RR last fell 9/32 in price
to yield 0.8586%, from 0.829% late on Friday.
Gold fell to its lowest in four months as optimism over
vaccine progress drove investors towards riskier assets.
Spot gold XAU= dropped 1.9% to $1,835.92 an ounce. Silver
XAG= fell 2.42% to $23.56.

World FX rates in 2020
2020 asset performance
Vaccine hopes send world stocks to record highs
EM FX was split by U.S. election...not any longer

GLOBAL MARKETS-Vaccine news boosts commodities, EM assets; stocks cheer Yellen news

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